Basics of stock market

N/A

• What is stock market?: It's open market where companies sell their stock in form of IPO and then the stocks are traded among the people/Stock brokers creating demand and supply - Leading to profits
• Why do we need stock market?: This becomes a platform to trade the stocks we have bought.
• What are the similarities and differences from other markets?: Not much different to other markets.
• What is SEBI and its role?: SEBI is an GOVT controlled regulator body to make sure there are no mall practices happening in the market.
• Who are share holder, promoter, and director? : Share holder - Owns the stock Promoters - How promotes the company & would have bought the stock Director - Acts as the operations and might be a share holder in most cases
• What is the difference between primary market and secondary market?: The primary market is where securities are created, while the secondary market is where those securities are traded by investors
• What is IPO? What is the process of applying for IPO?: IPO - Initial public offer Login in broker App - Apply for the IPO with the set price and volume desired
• Can share holder has right to ask for refund / can he ask for dividends?: No, the only possibility is to sell the stock
• What are the differences between investments and trading?: Investments are usually long term Trading resembles in short term
• What is Face Value, Dividend, Bonus and Split? : Value of the stock is face value Dividends - Sharing of certain share among the company directors.
• What is SENSEX and NIFTY?: SENSEX - Summation / Index of top companies performing at BSE NIFTY - Summation / Index of top companies performing at NSE usually TOP 50 COMPANIES
• How come NSE become popular than BSE?: NSE has more no.of companies participating in the market . Elexrtronic transaction medium, Futures trades available